Growth Investors Face a Dilemma With SPYG's 56.8% Tech Concentration After Recent Losses

"If you want broad U.S. equity exposure but prefer companies reinvesting cash into expansion over those mailing dividend checks, SPDR Portfolio S&P 500 Growth ETF (NYSEARCA:SPYG) offers a straightforward solution. This fund isolates the growth half of the S&P 500, emphasizing firms prioritizing revenue acceleration and margin expansion over income distribution. With a 0.04% expense ratio and $45.7 billion in assets, SPYG delivers large-cap growth exposure at rock-bottom cost."

"Over the past decade, SPYG's growth-focused strategy delivered 411% returns, significantly outpacing the broader S&P 500's 265% gain. This outperformance stems from the fund's heavy allocation to technology and communication services, which together represent 56.8% of assets. These sectors benefit from network effects and winner-take-most dynamics that reward companies achieving scale, turning market leadership into compounding advantages. NVIDIA Corporation ( NASDAQ:NVDA | NVDA Price Prediction) exemplifies this concentration strategy, commanding 13.47% of the portfolio as the fund's largest holding."

SPYG isolates the growth half of the S&P 500, prioritizing companies reinvesting profits into expansion rather than paying dividends. The fund charges a 0.04% expense ratio and manages $45.7 billion in assets. A 0.46% dividend yield signals a focus on capital appreciation rather than income. Over the past decade, SPYG returned 411% compared with the S&P 500's 265%. Technology and communication services comprise 56.8% of assets, concentrating exposure in large-cap tech leaders. NVIDIA represents 13.47% of the portfolio, and the top five holdings drive roughly 36% of returns, creating concentration risk.

Read at 24/7 Wall St.